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September 25, 1937

ORGANIZATION SECTION of the Journal of the American Medical Association: Devoted to the Organizational, Business, Economic and Social Aspects of Medical Practice

JAMA. 1937;109(13):1B-8B. doi:10.1001/jama.1937.02780390147054

A Heart Disease Racket  (Preliminary Report on an Alleged Extensive Disability Insurance Fraud)O. F. HEDLEY, M.D. Passed Assistant Surgeon, U. S. Public Health Service PHILADELPHIADuring the past few weeks the office of the United States Attorney in New York City uncovered one of the largest disability insurance frauds in years. Following an intensive investigation lasting several months, approximately thirty arrests have been made and a number of other persons summoned for questioning. Included among those involved are claimants, attorneys, lawyers' "runners" or "chasers," physicians, and representatives of several large life insurance companies.Although none of these persons have gone to trial, a number of important confessions have been obtained. Some reputable physicians unwittingly allowed themselves to become the tools of the ring. The methods allegedly employed in New York City are of interest to the medical profession, as it is not known to what extent they are practiced

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